(a)

the storage, by or for 1 of the following, of specified alcoholic products manufactured in a manufacturing area, where the specified alcoholic products cannot be physically accommodated within the manufacturing area:

(i)

the manufacturer of the specified alcoholic products:

(ii)

the first owner of the specified alcoholic products, if that person is not also the manufacturer of the specified alcoholic products:

10 New regulations 57A to 57C inserted

57A Specified alcoholic products: time for lodgement of entry

The time within which specified alcoholic products that are removed from a Customs controlled area must be entered is—

(a)

15 working days from the end of the month in which those products are removed; or

(b)

in any case where the total excise duty liability of the licensee for any year commencing on 1 July is estimated by the licensee to be $50,000 or less, in respect of specified alcoholic products removed from the Customs controlled area concerned in that year, the 15th working day of July immediately following that year; or

(c)

in any case where the total excise duty liability of the licensee for any year commencing on 1 July is estimated by the licensee to be more than $50,000 but less than $100,000,—

(i)

in respect of specified alcoholic products removed from the Customs controlled area concerned in the period of that year that commences with 1 July and ends with the close of 31 December, the 15th working day of January immediately following that period:

(ii)

in respect of specified alcoholic products removed from the Customs controlled area concerned in the period of that year that commences with 1 January and ends with the close of 30 June, the 15th working day of July immediately following that period.

(2)

This regulation is subject to regulation 57C.

57B Specified alcoholic products: time for payment of excise duty

(1)

The time within which excise duty must be paid in respect of specified alcoholic products that are removed from a Customs controlled area is—

(a)

the last working day of the month following the month in which those products are removed; or

(b)

in any case where the total excise duty liability of a licensee for any year commencing on 1 July is estimated by the licensee to be $50,000 or less, in respect of specified alcoholic products removed from the Customs controlled area concerned in that year, the last working day of July immediately following that year; or

(c)

in any case where the total excise duty liability of a licensee for any year commencing on 1 July is estimated by the licensee to be more than $50,000 but less than $100,000,—

(i)

in respect of specified alcoholic products removed from the Customs controlled area concerned in the period of that year that commences with 1 July and ends with the close of 31 December, the last working day of January immediately following that period:

(ii)

in respect of specified alcoholic products removed from the Customs controlled area concerned in the period of that year that commences with 1 January and ends with the close of 30 June, the last working day of July immediately following that period.

(2)

This regulation is subject to regulation 57C.

57C Specified alcoholic products: conditions for extension of time for lodgement of entry and payment of excise duty

(1)

A licensee (A) may use the time periods in regulations 57A(1)﻿(b) or (c) and 57B(1)﻿(b) or (c) for a year commencing on 1 July only if,—

(a)

as at the beginning of that year, A has—

(i)

held A’s Customs controlled area licence for at least 6 months; and

(ii)

not been suspended under subclause (2) from using the time periods in regulations 57A(1)﻿(b) or (c) and 57B(1)﻿(b) or (c) at any time during the previous 6 months; and

(b)

as at 1 August in that year, A has, within the time prescribed by these regulations,—

(i)

made all entries required to be made by A in the previous 12 months in respect of specified alcoholic products that have been removed from A’s Customs controlled area at any time; and

(ii)

paid all excise duty required to be paid by A in the previous 12 months in respect of specified alcoholic products that have been removed from A’s Customs controlled area at any time; and

(c)

A has provided specified evidence to the chief executive at any time before the beginning of that year.

(2)

Despite subclause (1), A’s right to use the time periods in regulations 57A(1)﻿(b) or (c) and 57B(1)﻿(b) or (c) is suspended if—

(a)

the chief executive requests A to provide specified evidence; and

(b)

A fails to provide the specified evidence to the chief executive within the time specified in the request (which must be at least 20 working days after the date of the request).

(3)

Any suspension under subclause (2) lasts until A provides specified evidence to the chief executive.

(4)

If A has the right to use the time periods in regulations 57A(1)﻿(b) or (c) and 57B(1)﻿(b) or (c) for a year commencing on 1 July but, at any point during that year, is suspended from doing so under subclause (2),—

(a)

any specified alcoholic products removed in that year (or, if regulations 57A(1)﻿(c) and 57B(1)﻿(c) apply, in the relevant time period of that year) up until the suspension must be entered within 15 working days from the end of the month in which the suspension took effect; and

(b)

the time within which excise duty must be paid, in respect of any specified alcoholic products removed in that year (or, if regulations 57A(1)﻿(c) and 57B(1)﻿(c) apply, in the relevant time period of that year) up until the suspension, is the last working day of the month following the month in which the suspension took effect.

(5)

In this regulation, specified evidence means reasonable evidence that A has adequate and effective systems that provide reasonable assurance that—

(a)

all entries required to be made in respect of specified alcoholic products removed from A’s Customs controlled area will be made within the time prescribed by these regulations; and

(b)

all excise duty payable in respect of specified alcoholic products removed from A’s Customs controlled area will be paid within the time prescribed by these regulations.

(b)

64A Refunds and remissions of excise-equivalent duty

(1)

The chief executive must not refund or remit any excise-equivalent duty under section 113(1) of the Act in relation to any specified goods if, prior to their importation, the goods were exported from New Zealand under drawback (see section 117 of the Act).

(2)

In this regulation, specified goods means—

(a)

any goods specified in item 24.02 or 24.03 of Part B of the Excise and Excise-equivalent Duties Table (tobacco products); or

(b)

any goods specified in items 22.03 to 22.08 of Part B of the Excise and Excise-equivalent Duties Table (alcoholic products).

15 New Schedule 1AA inserted

Insert the Schedule 1AA set out in the Schedule of these regulations as the first schedule to appear after the last regulation of the principal regulations.

Schedule New Schedule 1AA inserted

Schedule 1AA Transitional, savings, and related provisions

1 Interpretation

existing licence means a Customs controlled area licence or (as the case requires) a CASE licence granted by the chief executive before 1 February 2017

new licence means a Customs controlled area licence or (as the case requires) a CASE licence granted by the chief executive on or after 1 February 2017.

2 Application of regulation 57C (specified alcoholic products: conditions for extension of time for lodgement of entry and payment of excise duty)

Regulation 57C applies in respect of the year commencing 1 July 2017 and later years.

3 Specified alcoholic products: time for lodgement of entry and payment of excise duty

A licensee who holds an existing licence is deemed, for the purposes of regulation 57C(1)﻿(c), to have provided specified evidence to the chief executive.

4 Form of licence

(1)

Forms 2 and 2B, as amended by regulation 16 of the Customs and Excise Amendment Regulations 2016, apply only in respect of new licences.

(2)

However, regulations 9 and 11B do not prevent the chief executive from revoking a procedure statement in an existing licence and imposing new terms, conditions, or restrictions otherwise than in a procedure statement.

Michael Webster,Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

Regulation 4 inserts a number of definitions into regulation 2 of the principal regulations. These definitions were previously contained elsewhere in the principal regulations.

Regulations 6 and 8 amend the off-site storage of alcoholic products provisions. Regulation 6 amends regulation 6 of the principal regulations to increase the types of alcoholic products that the off-site storage provisions in that regulation apply to. The provisions currently apply only to wine, but the scope is being expanded to include all alcoholic products specified in items 99.10 to 99.50 of Part A of the Excise and Excise-equivalent Duties Table. Regulation 8 amends regulation 52A of the principal regulations (which relates to entries being made by owners) to provide that, if certain alcoholic products are removed from an off-site storage area that is licensed in accordance with regulation 6 (as amended), the owner of the products is responsible for making entries in respect of the products.

Regulations 7, 9, and 10 amend provisions relating to the payment of excise duty and the time for lodgement of entries of goods subject to excise duty. Regulation 7 amends regulation 52 of the principal regulations to provide that the time for lodgement of entry in respect of specified alcoholic products is determined under new regulation 57A. Regulation 9 amends regulation 57 of the principal regulations to provide that the time for payment of duty in respect of specified alcoholic products is determined under new regulation 57B. Regulation 10 inserts new regulations 57A to 57C, which provide the following:

new regulation 57A sets the time within which specified alcoholic products removed from a Customs controlled area must be entered. The time periods are the same as were previously contained in regulation 52:

new regulation 57B sets the time within which excise duty must be paid in respect of specified alcoholic products removed from a Customs controlled area. The time periods are the same as were previously contained in regulation 57:

new regulation 57C provides that a licensee may use the 6-monthly or annual time periods set out in new regulations 57A and 57B only if certain conditions are met. These conditions relate to compliance with the entry and payment provisions. New regulation 57C also contains a mechanism for a licensee to be suspended from using the 6-monthly or annual time periods if the licensee does not provide certain information to the chief executive when requested to do so.

Regulation 11 amends regulation 59 of the principal regulations to provide that business records relating to goods that have been damaged, destroyed, pillaged, or lost, or have diminished in value, deteriorated in condition, or are of faulty manufacture are required to be kept.

Regulations 12 to 14 relate to the conditions under which the chief executive may refund or remit duty as follows:

regulation 12 amends regulation 60 of the principal regulations (which relates to goods damaged or deteriorated in condition) to provide that duty on certain alcoholic and tobacco goods may be refunded or remitted in full without the goods being exported or destroyed under the supervision of the Customs if certain conditions are met:

regulation 13 amends regulation 63 of the principal regulations (which relates to goods of faulty manufacture) to provide that duty on certain alcoholic and tobacco goods may be refunded or remitted in full without the goods being exported or destroyed under the supervision of the Customs if certain conditions are met:

regulation 14 inserts new regulation 64A, which provides that excise-equivalent duty must not be refunded or remitted in relation to certain alcoholic and tobacco goods if, prior to their importation, the goods were exported from New Zealand under drawback.